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Johnston Terrace: Rising Home Values Amidst Shifting Ownership Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Johnston Terrace, a neighborhood in Austin, Texas, has experienced significant changes in homeownership rates and property values over the past decade. The area has seen fluctuations in ownership percentages while average home prices have shown a consistent upward trend. Average rent prices have also increased, albeit with some variations.
The relationship between homeownership rates and average home prices in Johnston Terrace presents an interesting dynamic. In 2013, the homeownership rate was 66%, with average home prices at $153,490. As average home prices steadily increased, reaching $314,089 in 2019, the homeownership rate also rose to 74%. However, this trend reversed in subsequent years. By 2022, despite average home prices climbing to $517,951, the homeownership rate dropped to 55%. This suggests that rising home prices may have priced out potential buyers, leading to a decrease in homeownership.
Federal interest rates have played a role in homeownership trends in Johnston Terrace. From 2013 to 2016, when interest rates were relatively low (ranging from 0.11% to 0.40%), homeownership rates remained stable around 65%. As interest rates began to rise in 2017 (1.00%) and 2018 (1.83%), homeownership rates initially increased to 71% and 70% respectively. However, by 2022, with interest rates at 1.68%, homeownership had declined to 55%, indicating that other factors, such as rapidly increasing home prices, may have outweighed the impact of interest rates on homeownership decisions.
Renter percentages and average rent prices in Johnston Terrace have shown some correlation. In 2013, the renter percentage was 34%, with average rent at $1,200. As the renter percentage increased to 37% in 2016, average rent rose to $1,476. However, in 2019, despite a decrease in the renter percentage to 26%, average rent reached $1,514. By 2022, the renter percentage increased significantly to 45%, with average rent at $1,573. This suggests that while rent prices have generally increased, other factors such as housing availability and overall market conditions may influence renter percentages.
In 2023 and 2024, Johnston Terrace experienced a shift in the housing market. Average home prices decreased from the 2022 peak of $517,951 to $475,789 in 2023 and further to $457,909 in 2024. This decline coincided with a sharp increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates likely contributed to the cooling of the housing market and the decrease in average home prices.
Looking ahead, predictive models suggest that average home prices in Johnston Terrace may continue to experience moderate declines over the next five years, potentially stabilizing around $425,000 by 2029. Average rent prices are projected to increase gradually, potentially reaching around $1,800 by 2029. These forecasts take into account current market conditions, interest rate trends, and historical patterns in the neighborhood.
In summary, Johnston Terrace has witnessed significant changes in its housing market. The inverse relationship between rising home prices and declining homeownership rates in recent years is particularly noteworthy. The neighborhood has also experienced fluctuations in renter percentages and steady increases in average rent prices. The recent decline in home prices, coupled with rising interest rates, marks a shift in the market dynamics. These trends highlight the complex interplay between housing affordability, interest rates, and population changes in shaping the real estate landscape of Johnston Terrace.
